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NextDC, OpenAI 's $7b deal faces energy uncertainty

One of Australia's biggest AI infrastructure deals has been announced, just days after the Labor government said new data centre builds must be powered by renewable energy.

OpenAI chief strategy officer Jason Kwon was flanked by representatives from Australian governments and private sector collaborators for the launch of OpenAI in Australia. Brandon How.

NextDC chief executive Craig Scroggie has admitted that key uncertainties remain over the data centre operator’s $7 billion “hyperscale AI" venture with OpenAI, including critical decisions over energy supply and computing power.

On the sidelines of an event to announce the project in Sydney on Friday, Scroggie told Capital Brief the company had not yet gone to market for renewable power, while OpenAI has not yet determined how much computing power it will buy from NextDC, nor has it made any investment commitments.

“We have existing [purchasing power agreements], but we will go to market for new renewable energy agreements, solar, wind, battery as part of the new development,” Scroggie said.

Earlier in the week, the Albanese government released long awaited details of its National AI plan which set “clear expectations for sustainability” on new data centre builds, including requirements to bring new renewable energy online.